June 28, 2011
- ONGC's Head and shoulders showed how a failed pattern can give a fast move in the opposite direction.
- After breaking the neck line there was no big breakdown. The Long Shadows of the daily candles gave a hint of the reversal.
- When price reversed above the neck line it was time to go long and longs gave good profits.
- So when a pattern fails have plans to reverse your trade.
- Long Shadows often shows reversals
BANK NIFTY DAILY LINE CHART
SBI DAILY CHART
- Bank Nifty is getting into a resistance zone.
- As shown in the first chart price has reversed many times from 11160 level on a closing basis.
- Around 11300 price will also hit the Down Trend line.
- So for a bigger breakout to happen price should sustain and close above 11300 Level.
- SBI too is approaching resistance zone. So if Bank Nifty is to make a breakout Then SBI has to stay above 2353 and should make an attempt towards its 50 DMA.